In recent years, the role of the Chief Human Resources Officer (CHRO) has undergone a profound transformation. No longer confined to traditional HR functions, CHROs are now pivotal players in shaping organizational and business strategy, driving change, and fostering a culture that promotes employee well-being and inclusion. This evolution requires a new set of skills and strategies to address the myriad challenges facing today’s businesses.
The New Business Mindset for CHROs
The necessity of having a business-oriented mindset is a significant shift in the CHRO role. CHROs must now speak the “language” of the business and understand and articulate what drives the organization forward. It’s important to focus on key metrics that matter to the board, shareholders, employees, and customers and aligning people strategies with the over strategic plan of the organization. It’s no longer good enough to manage traditional HR functions—CHROs must now drive talent acquisition and development to support a digitally-focused future. Building and upskilling talent is crucial in this rapidly changing environment.
CHROs must be fully aligned with the board and C-suite departments to build a strategic plan that includes people as a key component to organizational success. Every HR initiative should support the overall business strategy, whether it’s digital transformation, talent development, or compensation structures. CHROs must view themselves as business leaders first, with HR being one aspect of their broader leadership role.
Navigating Hybrid Work Environments
One of the biggest challenges for CHROs today is managing hybrid work environments. The COVID-19 pandemic has mandated a new way of thinking about workplace culture, talent development, workplace flexibility, and mindset. Creating productive, comfortable, and safe office environments that employees want to work in is a top priority for many organizations. This includes not only the physical workspace but also fostering interactions that help develop new skills and build stronger teams.
For companies with distributed workforces, like those operating across multiple markets, balancing flexibility with productivity and engagement is critical. A CHRO must view the new workplace with a new outlook. Strategies include in-person training on specific days, hosting lunches and speaker events in the office, and using office space for client interactions. These efforts help maintain a cohesive culture while accommodating employees’ desires for flexible work arrangements.
Leveraging Technology
Another pressing challenge is integrating new technology, particularly artificial intelligence (AI), into HR functions. AI offers promising applications in areas like writing job descriptions, recruiting, and training; but it also requires careful management to avoid harmful biases and other unintended consequences. CHROs must work closely with IT partners to implement AI solutions that enhance HR processes without compromising fairness or accuracy. Adding the human touch to some of the technological advances (review procedures, work review teams, etc.) can help.
The uncertainty surrounding AI’s impact on jobs is a significant concern for many employees. CHROs must navigate this fear by emphasizing that AI is intended to enhance job performance rather than replace employees. Open discussions and constant communication about AI’s role in the workplace can help alleviate fears and highlight opportunities for growth and development.
Additionally, the rise of social media has brought employees’ personal views into the workplace more prominently than ever before. Managing this balance is challenging, requiring open and honest conversations about how personal views impact the workplace. This transparency helps address potential conflicts and fosters a more inclusive environment—while also protecting the company’s brand and image.
Prioritizing Employee Wellbeing
Eliminating stress is impossible, but helping employees manage stress levels in an increasingly competitive work environment is key. CHROs are center stage in making employee well-being a priority. With a rise in leave requests and medical claims among employees, it’s vital to keep their well-being top of mind. Addressing these issues requires a proactive approach, including expanding benefits programs to cover virtual behavioral health visits, providing independent referral services, and partnering with organizations like the National Alliance on Mental Illness (NAMI).
Companies could (and should), for example, offer integrated mental health programs for their employees as part of their overall employee accommodation strategy. These could include:
- Resilience skills training
- Managing stress sessions
- Small-group discussions to foster open communication
Such initiatives demonstrate the company’s commitment to supporting the mental health of its employees.
Championing Diversity, Equity, and Inclusion (DEI)
Although coming under some scrutiny, a strong commitment to diversity, equity, and inclusion (DEI) is essential for modern CHROs. Initiatives that educate employees on the value of a diverse and inclusive culture, empower them to embrace authenticity, and challenge the company to incorporate inclusive values into all aspects of business are crucial.
CHROs must prioritize inclusion to achieve sustainable diversity and equity. This involves having tough conversations about perceived comments or actions and taking steps to address them. Establishing a framework of openness and communication is essential for educating leaders and managers on fostering a diverse and inclusive workplace.
Navigating the Legal Landscape
The ever-changing legal landscape also presents significant challenges. From restrictive covenants in employment agreements to varying family leave requirements across states, compliance is increasingly complex. These legal changes affect not only the administration of compensation and benefits but also the overall employee experience. CHROs must ensure that their organizations remain compliant while maintaining a positive workplace culture.
Coaching and Leadership Development
As CHROs take on broader leadership roles, they often find themselves coaching not only HR team members but also peers on the executive team. Effective coaching skills are essential, enabling CHROs to help leaders find their paths and solutions. This self-discovery process fosters stronger leadership and supports the overall business strategy.
Shaping the Future of Work
The role of the CHRO is evolving rapidly, encompassing a broader range of responsibilities and requiring new skills and strategies. The CHRO has a wide workload and must establish a diverse and current toolbox to meet the varied challenges this role demands. From adopting a business mindset to managing employee well-being and from navigating legal complexities to ensuring the next generation of managers are prepared to take lead, the CHRO role has truly evolved to one of the most complex and rewarding roles in any organization. The CHRO’s role is more critical than ever in shaping the future of work and ensuring that companies thrive in an increasingly complex and dynamic business landscape.
Nancy Tostanoski is EVP, Chief Human Resources Officer at OUTFRONT.
Vivek Arora is Chief Administrative Officer and General Counsel at SAM.
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